| Link(s): | https://www.abi.org.uk/news/news-articles/2022/05/payouts-for-bereavement-illness-and-injury-claims/ |
Context
According to latest figures from the Association of British Insurers (ABI) and Group Risk Development (GRiD) a record £6.8 billion has been paid out in individual and group life insurance, income protection and critical illness claims in 2021. This equated to £18.6 million a day- £1.6 million a day more than 2020’s previous record.
Key points to note
- This is the third year in a row that the average individual payout has increased and the average value for a claim is up 9% on 2020.
- Pay-outs for Covid-19 related individual claims almost doubled in 2021.
- 98% of both individual and group claims were paid in 2021.
- The number of individual income protection claims fell from 17,000 to 14,600.
- Individual income protection claims for musculoskeletal conditions increased to 5,012 in 2021.
- After a significant rise in mental health claims under individual income protection in 2020, claims decreased by almost 20% in 2021.
Next actions
None – for information and awareness